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Date updated:10-20-2007

Sandell Asset Management

Fund was started by Thomas Sandell, formerly the Senior Managing Director for Bear Stearns’ Risk Arb unit in 1998. The firm currently oversees $7 Billion in investments, and is involved in risk arbitrage and activist situations. Often the fund teams up with former corporate raider-turned-activist Nelson Pelz. For instance, they both worked together as activists recently on Wendy’s and more recently on HNZ.

Another recent situation is SUG. From a recent Seeking Alpha post describing the situation we can get insight into Sandell’s valuation process and activist stance:

“Sandell began its run on SUG on May 1st, when it started buying the stock through a series of privately negotiated transactions (back-to-back call & put transactions with a financial institution, and call option exercises/put sales to a counterparty), picking up more than 2.2M shares in this manner through June 1st. Since the beginning of this month, Sandell has acquired another 6.8M shares of SUG through open market buys, including 239.7K shares at $25.60 to $25.78 on Friday, June 23rd. Thus far, Sandell has paid more than $264.62M, or about $24.59 per share, to build its stake in SUG.
In a letter to George Lindemann, SUG's chairman & CEO, Thomas Sandell, the CEO of Sandell Asset Management, said that SUG's current stock price "reflects a large and unwarranted discount to the intrinsic value of the Company that also does not recognize the strategic transformation of SUG from a regional gas utility to a natural gas-focused midstream & pipeline powerhouse."
To unlock this intrinsic value, Sandell suggested that SUG: 1) create a tax advantageous master limited partnership ("MLP"); 2) continue to sell its remaining local gas distribution utilities; and 3) raise its annual dividend to $1 per share to bring the company's dividend policy more in line with SUG's peers, and consider putting SUG up for sale.
"We believe the current intrinsic value of SUG to conservatively be $35 per share based on a variety of valuation metrics. While an increase in dividends will not meaningfully change the fundamental value of the Company, it will be an important catalyst in helping to narrow the currently large discount to fair value. Moreover, an MLP will provide greater value to stockholders given the tax-efficient nature of the structure, and we estimate the adoption of an MLP is likely to boost SUG's stock to $36-$41 per share," Sandell wrote.
“

According to the New York Post, the firm’s flagship Castlerigg portfolios were up between 14.24% and 16.5% year-to-date by October of 2006.

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• 
• PXP
  Plains Exploratio
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As of 10-19-07: In a 13D filing on Plains Exploration & Production Company (NYSE: PXP), Sandell Asset Management disclosed an 5.1% stake in the company and a letter to the Chairman Mr. James Flores. In the letter, Sandell said while it is inclined to support the Pogo (NYSE: PPP) transaction, it is concerned by Plains' management's inability to provide a strategic plan for the combined company post-closing.

People owning PXP also tend to own: COGFSTHYSLINFAQSFTSOVVLY

TheStreet.com Rating: D What is this?

• 
• SY
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As of 10-12-07: In a 13D filing Friday on Sybase, Inc. (NYSE: SY), Sandell Asset Management disclosed a 6% stake in the company and urged the company to pursue various options to improve shareholder value including (i) aggressive use of balance sheet to repurchase shares, (ii) IPO and spin-off 100% of mobility segment and (iii) sale of the Issuer in whole or in part.

People owning SY also tend to own: AMATBDGGEJNJMERMFIMSFT

TheStreet.com Rating: A- What is this?

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TheStreet.com Rating: D What is this?

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TheStreet.com Rating: C- What is this?

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• THX
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People owning HLX also tend to own: AOBASNBBCCEOERFLONGPTEN

TheStreet.com Rating: D What is this?

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